Indian shares rise on election as Asia closes mixed

Chinese stocks gain after capital-market reform blueprint

By

DanielInman

Stocks in Mumbai hit a new high Monday, and the rupee was its strongest in 10 months, on hopes the Indian election will bring in a more business-friendly government. Meanwhile, Chinese stocks rose as the market welcomed a blueprint for capital-market reform.

In Mumbai, the S&P BSE Sensex
1, -0.07%
was last up 1.8% at 23,415.89 after hitting a record 23,453.29 earlier in the day. The rupee was last trading at 59.74 to the dollar.

Investors are awaiting exit polls due Monday evening for more clues on who will win the Indian national election, with many hoping that the Bharatiya Janata Party gets enough seats to form the next government in place of the ruling Congress party-led coalition. The Sensex has risen 15% since the end of January.

The other market making large moves was China, where the Shanghai Composite
SHCOMP, -1.02%
rose 2.1% to 2052.87 after Beijing on Friday outlined its vision for a less regulated market, including a more investor-driven system for initial public offerings and easier access for foreign capital. The impact spilled over to Hong Kong, where the Hang Seng Index
HSI, +0.18%
was up 1.8% to 22261.61.

A bad time for a $500 million Thai luxury mall?

(3:04)

Thailand’s newest luxury mall, Central Embassy, has opened in Bangkok, costing developers more than $500 million. But with consumer sentiment at a 13-year low, the WSJ’s Ramy Inocencio talks with Crystal Tang at Capital Economics on the timing.

Elsewhere in Asia, the positive lead from the Dow Jones Industrial Average closing at a record high Friday was offset by renewed concerns over Ukraine. Pro-Russian separatists in the east of the country declared victory in a secession referendum Sunday, increasing tensions between the West and Moscow.

Japan’s Nikkei
NIK, -1.05%
pared its earlier gains and ended down 0.4% at 14,149.52, as the dollar came off a session high of ¥102.05 against the yen. The dollar was last trading at ¥101.89, compared with ¥101.82 late Friday in New York.

“Corporate earnings reports and economic data are on watch this week but the stagnant currency market will keep any Nikkei gains capped,” said Investrust Chief Executive Hiroyuki Fukunaga.

In Tokyo, Olympus was up 4.8% after the company said its operating profit doubled in the recently ended fiscal year. Nippon Steel & Sumitomo Metal also added 1.1% after a positive earnings report.

Australia’s S&P/ASX 200
XJO, +0.78%
was down 0.2% at 5,448.40, South Korea’s Kospi
SEU, +0.54%
was 0.4% higher at 1,694.94, while Singapore’s Straits Times Index
STI, -0.21%
was down 0.8% late in Asia.

Mining stocks in Australia were weak after spot iron-ore prices fell to a 20-month low, with Fortescue Metals Group
FMG, +1.82%
down 1.9% and BHP Billiton
BHP, +3.09%
down 0.5%.

A number of markets were looking ahead to events on Tuesday. In Australia, Prime Minister Tony Abbott’s government will release its first federal budget, while China will publish industrial production data and retail sales figures for April.

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